Analyzing Cicero (CICN) and Formula Systems (1985) (FORTY)

Cicero (OTCMKTS:CICN) and Formula Systems (1985) (NASDAQ:FORTY) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, dividends, institutional ownership and risk.

Profitability

This table compares Cicero and Formula Systems (1985)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cicero -252.04% N/A -623.02%
Formula Systems (1985) 1.83% 3.42% 1.68%

Analyst Ratings

This is a summary of recent ratings for Cicero and Formula Systems (1985), as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cicero 0 0 0 0 N/A
Formula Systems (1985) 0 0 0 0 N/A

Volatility and Risk

Cicero has a beta of 0.04, meaning that its stock price is 96% less volatile than the S&P 500. Comparatively, Formula Systems (1985) has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500.

Earnings & Valuation

This table compares Cicero and Formula Systems (1985)’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cicero $1.31 million 0.67 -$2.11 million N/A N/A
Formula Systems (1985) $1.36 billion 0.43 $10.35 million N/A N/A

Formula Systems (1985) has higher revenue and earnings than Cicero.

Institutional and Insider Ownership

0.1% of Formula Systems (1985) shares are owned by institutional investors. 89.0% of Cicero shares are owned by insiders. Comparatively, 23.3% of Formula Systems (1985) shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Formula Systems (1985) pays an annual dividend of $0.47 per share and has a dividend yield of 1.2%. Cicero does not pay a dividend.

Summary

Formula Systems (1985) beats Cicero on 8 of the 10 factors compared between the two stocks.

About Cicero

Cicero Inc. provides business integration software solutions in the United States and Europe. The company's software enables organizations to integrate new and existing information and processes at the desktop; and addresses the need for a company's information systems to deliver enterprise-wide views of their business information processes. It offers Cicero Discovery, a configurable tool to collect activity and application performance data, and track business objects across time and multiple users, as well as measure against a defined expected business process flow; and Cicero Insight, a measurement and analytics solution that collects and presents information about quality, productivity, compliance, and revenue from frontline activity to target areas for improvement. The company also provides Cicero Automation that delivers features of the Cicero Discovery product, as well as desktop automation for enterprise contact center and back office employees; integrates applications and automates workflow; and control and adaptability at the end user desktop. In addition, it offers technical support, training, and consulting services. The company sells its products and services directly, as well as through distributors and other intermediaries who resell it to end-users. It serves financial services, insurance, telecommunications, and healthcare industries; and business process outsourcers, as well as intelligence, security, law enforcement, and other governmental organizations. The company was formerly known as Level 8 Systems, Inc. and changed its name to Cicero Inc. in January 2007. Cicero Inc. was founded in 1988 and is headquartered in Cary, North Carolina.

About Formula Systems (1985)

Formula Systems (1985) Ltd., through its subsidiaries, provides software, proprietary and non-proprietary software, and software product marketing and support services. The company offers computer and telecommunication infrastructure solutions; computer solutions to computer and communications infrastructures; cloud computing solutions; database and big data services; customer relations management, computer systems management infrastructures, Web world content management, database and data warehouse mining, application integration, database and systems, data management, and software development tools; and professional training courses and advanced professional studies. It also markets and sells computers and peripheral equipment to business customers. In addition, the company offers life, pension, and annuities platforms/solutions, including Sapiens ALIS, LifeSuite, Life Portraits, LifeApply, Sapiens INSIGHT, and Sapiens Closed Books; property and casualty/general insurance platforms/solutions, such as Sapiens IDIT, Adaptik Policy, Adaptik Billing, Stream Claim, Sapiens Stingray, PowerSuite, and CompSuite; and reinsurance software solutions comprising Sapiens Reinsurance, Freedom Reinsurance System, and Universal Reinsurance System. Further, it provides financial and compliance solutions that include eFreedom Annual Statement, PRO Financial General Ledger and Accounts Payable, Preferred Tax Enterprise Financial applications, Insurance Financial reporting, and Power2Play; Sapiens DECISION, a decision management platform; and technology-based solutions and digital insurance suites. Additionally, the company offers application development and business process integration platforms; vertical software solutions; vendor of software services and IT outsourcing software services; and professionals in various areas, as well as develops on-premise payroll software solutions. The company was founded in 1985 and is headquartered in Or Yehuda, Israel.

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